HomeMy Public PortalAboutORD14049 BILL NO. 2006-14
• SPONSORED BY COUNCILMAN 41
Brown
ORDINANCE NO. /L}D
AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AMENDING THE
FIREFIGHTER'S RETIREMENT PLAN BY AN AMENDMENT NO. FIVE TO MAKE THE
CHANGES DESCRIBED IN THE ATTACHED SUMMARY OF CHANGES TO COMPLY
WITH CERTAIN FEDERAL INCOME TAX AND LABOR LAWS.
BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS
FOLLOWS:
Section 1: Section 2.1 for the Jefferson City Firemen's Pension Plan (hereinafter the "Plan") is
amended, effective September 3, 1990, to read in its entirety as follows:
2.1 "Accumulated Contributions"means the sum of all mandatory after-tax contributions
made to this plan by a Member prior to September 3, 1990, together with Regular Interest
thereon. Accumulated contributions do not include City pick-up contributions, as defined
in Section 10.1.
• Section 2: Section 2.8 of the Plan, is amended, effective as of the date indicated, to read in its
entirety as follows:
2.8 "Compensation"nacans thebasic monthly wageorsalary,including holiday pay,paid
to a Member, including Elective Contributions, as hereinafter defined, but excluding
bonuses, overtime, expense allowances and other extraordinary compensation. For this
purpose,any Member who is on a workers'compensation leave of absence shall be deemed
to have continued receiving the same level of Compensation as in effect immediately prior
to the commencement of the leave. The immediately preceding sentence shall not apply,
however, to any workers' compensation leave of absence during which a Member
fraudulently obtains workers' compensation benefits. Instead, any such leave shall be
excluded from both of the twelve (12) month and sixty (60) month periods described in
Seetion2.2. Tile term"Elective Contributions"for this purpose,include any salary reduction
contributions to(i)a Code Section 125 cafeteria plan after December 31, 1997,(ii)a Code
Section 132(1) qualified transportation fringe benefit plan after December 31, 2000 or(iii)
a Code Section 457(b)governmental deferred compensation plan after December 31, 1997.
For plan years beginning after December 31,2001, a Mcmbces annual Compensation shall
be limited to$200,000,as adjusted by the Commissionerof the Internal Revenue Service for
increases in the cost of living in accordance with Section 401(a)(17)(B) of the Code. For
plan years beginning after December 31, 1995, and before January 1, 2002, a Member's
annual Compensation shall be limited to$150,000.00, as adjusted by the Commissioner of
the Internal Revenue Service for increases in the cost of living in accordance with Section
• IN644 Page l
401(a)(1 7)(l3)of the Code. Annual compensation means compensation during the plan year
• or such other consecutive 12-month period over which compensation is otherwise
determined under the plan(tile determinationperiod). The cost of living adjustment in effect
for a calendar year shall apply to any 12- consccutivc-month period beginning in such
calendar year. If Compensation earned during any 12-consecutive-month period beginning
before December 31, 1995, is taken into account in determining a Member's benefits
accruing in a plan year beginning after December 31, 1995,the Member's Compensation for
that 12-consecutive-month period shall be limited to $150,000.00, unadjusted for any
subsequent increases in the cost of living.
In determining the Compensation of a Member prior to January 1, 1997 for purposes of any
dollar limitation set forth in the preceding paragraph, the rules of Section 414(q)(6) of the
Code shall apply, except in applying such rules, the terns "family" shall include only the
spouse of the Member and any lineal descendants of the Member who have not attained age
19 before the close of the plan year. If, as a result of the application of such rules, a dollar
limitation is exceeded, then the limitation shall be prorated among the affected individuals
in proportion to each such individual's Compensation as determined prior to the application
of the dollar limitation.
Notwithstanding the foregoing, effective December 12, 1994, if a Member is reemployed
within the time prescribed by law after a period of"qualified military service", as defined
in Section 414(u)(5) of the Code, then the Member shall be treated as receiving
• Compensation during the period of qualified military service equal to—
(a) the Compensation the Memberwould have received during such period iftile
Member were not in military service, based on the rate of pay the Member would
have received from the City, but for his absence during the period of qualified
military service,or
(b) if the Compensation the Member would have received is not reasonably
certain, the Member's average compensation from the City during the 12-month
period immediately preceding commencement of the qualified military service(or,
if shorter, the entire period of employment for the City immediately preceding
commencement of his qualified military service).
Section 3: Section 2.11 of the Plan is amended,effective December 31,2005,to read in its entirety,
as follows:
2.11 "Eligible Child" means a person who:
(a) is a living,natural,adopted,or stepchild ofa Member or a child for whom the
Member is the legal guardian; and
(b) such person is both single and principally dependent on file Member for
economic support; and• 2006-14 Page z
(c) has not reached his 19th birthday;
• provided, however, that no more than the youngest three of such living children will be
considered Eligible Children at any one time.
Section 4: Section 2.19 of the plan is amended, effective January 1, 2005 as follows:
2.19 "Plan Year" means the fiscal year of the City. The fiscal year of the City is November
1 to October 3l" .
Section 5: Section 3.6 of the Plan is amended, effective as of December 12, 1994, to read in its
entirety as follows:
3.6 Reemployment After a Period of Qualified Military Service. Effective December 12,
1994, if a Member is on a military leave of absence during a period of"qualified military
service", as defined in Code Section 414(u)(5), during which his reemployment rights arc
guaranteed by federal law,he shall be entitled to Membership Service for the period of his
"qualified military service", provided he is reemployed after the expiration of his military
service within the time required by federal law.
Section 6: Subsection 4.1(d) of the Plan is amended, effective January I, 1985, to read in its
entirety as follows:
• 4.1 Retirement Benefit.
(d) Commencement and Duration. The Payment of Retirement Benefit will commence
as soon as administratively practicable after a Member's retirement date and, in any event,
by no later than April 1 of the calendar year immediately following the calendar year in
which the Member attains age 70%2 or retires, whichever is later, and will terminate upon
payment of the amount payable on the first day of the month in which the Member dies.
Any application for a Retirement Benefit must specify a retirement date not fewer than 30
nor more than 90 days after the date the application is filed. If the Member's service has
been discontinued during the notification period,he will nonetheless be retired as of the date
specified. Notwithstanding the foregoing from January 1, 1987 to December 31, 1996,the
payment of a Retirement Beneft will commence as soon as administratively practicable after
a Member's retirement and, in any event, by no later than April 1 of the calendar year
immediately following the calendar year in which a Member attains age 70%2, even if the
Member had not retired,and shall terminate upon payment of the amount payable on the first
day of the month in which the Member dies. The provisions of Section 7.3 hcreol'describe
the Retiree Death Benefits provided by this Plan (which satisfy in conjunction with this
subsection 4.1(d) the Code section 401(a)(9) requirements relating to the time over which
a Member's Retirement Benefit must be paid).
Section 7: Section 8.1 of the Plan is amended, effective January 1, 1987, to read in its entirety as
• 2006.14 Pap 3
follows:
• 8.1 Section 415 Limitations. In no event will the benefits payable under the plan,
including any lump sum or annuity cost of living adjustment benefits paid pursuant to Article
IX or Article XVI of this plan, exceed the limitations applicable to the plan under Code
Section 415 and the regulations promulgated thereunder, the provisions of which are
incorporated herein by reference, including, but not limited to, Code Section 415(b)(2)(G)
and (H), which apply solely to state or local government pension plans for firefighters and
Code Section 415(b)(11)which applies to governmental plans. A Member's compensation
for this purpose shall mean the Member's compensation as defined in Treas. Reg. 1.415(d)-
2(d), which is incorporated herein by reference, plus after 1997, Elective Contributions, as
defined in Section 2.8 hereof,the sum of which shall be subject to the applicable limitation
set forth in Code Section 401(a)(17) for such limitation year. In any calculation of the
limitations under Code Section 415 during the period from January 1, 1995 to December 30,
2002, that requires the use of a mortality table, the mortality table that can be used for this
purpose shall, pursuant to Rev. Rul. 95-6, be the 1983 Group Annuity Mortality Table
("GAM 83"). In any calculation of the limitations of the plan under Code Section 415 from
and after December 31, 2002 that requires the use of a mortality table, the mortality table
that shall be used for this purpose shall be the applicable mortality table under Code Section
417(c), which as of December 31, 2002 is the 1994 Group Annuity Reserving Mortality
Table,projected to 2002. Furthermore,effective from and oiler January 1,2002,a Member's
annual Compensation of up to$160,000,as adjusted pursuant to Code Section 415(d),shall
• be recognized for this purpose and shall include his "Elective Contributions", as defined in
Section 2.8 hereof. If benefits payable under any provision of the plan would exceed such
limitations, then notwithstanding any other provisions of the plan, such benefits shall be
reduced to the extent necessary to ensure that such limitations are not exceeded. Appendix
B is added to this plan,to include the January 1, 1984 Code Section 415(b)limitations in the
plan document. Appendix B is added to this plan to include the January 1, 1975 Code
Section 415(b) limitations in this plan document.
Section 8: Article IX of the Plan is deleted, effective December 31, 2005 so it reads as follows:
(because the 13th check reserve has been distributed to eligible retirees in accordance with this
Section 9.3 of the Plan, and no further excess interest will be allocated to the reserve previously
provided for in Section 9.1 of the Plan):
Article IX
[Reserved]
Section 9: Section 10.1 is amended, effective January 12, 2004, to read in its entirety as follows:
10.1 Pick-up Contributions and Withdrawal of Accumulated Contributions.
(a) Effective January 12, 2004, City pick-up contributions in an amount equal
to four percent(4%)of the Member's Compensation will be made to the general fund
of the plan, beginning on May 19, 2003, tile 2003 Amendment Date. From
• 2006.14 Page
September 3, 1990 to May 19,2003,pick-up contributions,as defined in subsection
• 10.1(b) hereof, were made to the plan's 13"' Check Fund by the City in an amount
equal to one percent(1%)of each Member's Compensation. Prior to September 3,
1990 Member's were required to make mandatory after-tax contributions to the
general fund of the plan,which,together with Regular Interest,are defined in section
23 hereof as Accumulated Contributions.
(b) Contribution by City. The City, pursuant to the provisions of Code Section
414(h)(2),will "pick up" and pay the contributions that would otherwise be payable
by Members as prescribed herein (i.e., one percent (1%) of each Member's
Compensation). The contributions so picked up will be treated as employer
contributions for purposes of determining the amounts of federal and state income
taxes to withhold from the Member's Compcnsation.
(c) Deduction from Compensation. Contributions picked up by the City will be
paid from the same source of funds used for the payment of Compensation to a
Member. A deduction will be made from each Member's Compensation equal to the
amount of the Member's contributions picked up by the City, provided that such
deduction will not reduce the Member's Compensation for purposes of computing
benefits under this plan. The deductions provided for herein will be made even
though the minimum compensation payable to each Member as provided by
• ordinance will be reduced thereby, and each Member will be deemed to consent to
the deductions so made and provided for herein. Payment of a Member's salary or
compensation less such deduction will be a full and complete discharge of all claims
and demands whatsoever for services rendered by such Member during the period
covered by such payment, except as to benefits provided under this plan.
(d) Withdrawal of Accumulated Contributions by Members. Any Member not
eligible to receive any benefit under the plan may, upon his termination of
employment with the City, withdraw all or any portion of his Accumulated
Contributions. Except as provided in Article 111,however,a Mcmber who withdraws
any portion of his Accumulated Contributions will forfeit all Membership Service
earned prior to that withdrawal. Accumulated Contributions will be distributed as
soon as administratively practicable after a Member's proper written request therefor
or, in case of the Member's death without being survived by an Eligible Spouse or
Eligible Child, to his/her beneficiary or, if none, hislher estate,
• 7006.14 Page 5
Section 10: Section 11.2 is amended, effective January 1, 2002, to read in its entirety its follows:
• 11.2 Definitions, For purposes of this Article,the following terms shall have the meaning
ascribed to them below:
(a) An "eligible rollover distribution" is any distribution of all or any portion of
the balance to the credit of the distributcc,except that an eligible rollover distribution
does not include: any distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made for the life (or life
expectancy) of the distributcc or joint lives (or joint life expectancies) of tite
distributee and the distributee's designated beneficiary, or for a specified period of
ten years or more; any distribution to the extent such distribution is required under
section 401(a)(9) of the Code. For distributions made after December 31, 2001, a
portion of a distribution shall not fail to be an eligible rollover distribution merely
because the portion consists of after-tax employee contributions which are not
includible in gross income. However, such portion may be transferred only to an
individual retirement account or annuity described in section 408(x)or 408(b)of the
Code, or to a qualified defined contribution plan described in section 401(a) or
403(b) of the Code that agrees to separately account for amounts so transferred,
including for the portion ofsuch distribution which is includible in gross income and
the portion of such distribution which is not so includible. Any amount that is
distributed on account of hardship shall not be an eligible rollover distribution and
• the distributcc may not elect to have any portion of such a distribution paid directly
to an eligible retirement plan.
(b) An "eligible retirement plan" is an individual retirement account described
in section 408(a)of the Code, an individual retirement annuity described in section
408(b) of the Code, an annuity plan described in section 403(x) of the Code, or a
qualified trust described in section 401(a)of the Code,that accepts the distributec's
eligible distribution. However,in the case of an eligible distribution to the surviving
spouse, an eligible retirement plan is an individual retirement account or individual
retirement annuity. For distributions made after December 31, 2001, an eligible
retirement plan shall also mean an annuity contract described in section 403(b)of the
Code and an eligible plan section 457(b)of the Code which is maintained by a state,
political subdivision of a state,or any agency or instrumentality of a state or political
subdivision of a state and which agrees to separately, account for amounts
transferred into such plan from this plan. The definition of eligible retirement plan
shall also apply in the case of a distribution to a surviving spouse, or to a spouse or
former spouse who is the alternate payee under a qualified domestic relations order,
as defined in section 414(p) of the Code.
(c) A "distributee" includes a Firefighter or former Firefighter. In addition, the
Firefighter's or former Firefighter's surviving spouse and the Firefighter's or former
Firefighter's spouse or former spouse who is the alternate payee under a qualified
domestic relations order, as defined in Section 414(p) of the Code, are distributecs
• 2W6•14 Page
with regard to the interest of the spouse or fornicr spouse.
• (d) A "direct rollover" is a payment by the Plan to the eligible retirement plan
specified by the distributce.
Section 11: Section 12,8 is added, effective March 28, 2005, to read as follows;
12.8 No Mandatory Cash-Out Distributions, Benefit payments from the Plan shall only
be made on the basis of a written application of(i)a Member, Eligible Spouse, Beneficiary,
the legal guardian of an Eligible Child or the legal representative of a deceased Member's
estate, whichever is applicable, and (ii) the written authorization of an authorized member
of the Board of Trustees.
Section 12: Section 14.4 is added, effective July 20, 1994, to read as follows:
14.4 Effect of Complete or Partial Termination. If this plan shall be partially or
completely terminated, then the accrued benefits of all Members affected by the complete
or partial termination shall, to the extent funded, become fully vested and nonfirrfeitable.
Accrued benefit for this purpose shall mean the Retirement Bencfit the Member has earned
as of his Retirement Date, as determined under Section 4.1 hereof, payable in the form of
a life annuity, as set forth in subsection 43(b), based on the Member's Average Final
Compensation as of the date of the complete or partial termination of the plan and/or the
• assumption that his/hcrCredited Service would have continued uninterrupted to the date the
Mcmber would have completed the applicable years of Credited Service described in Section
4.1(a)(ii),for a Retirement Benefit,multiplied by a fraction the numerator of which shall be
the number of the Member's years of Credited Service at the complete or partial termination
of the plan and the denominator of which shall be the years of Credited Service the Member
would have completed under Section 4.1(a)(ii) at his Retirement Date,
Section 13: Appendix A is added, effective as of January 1, 1983, to read as follows:
Appendix A
Maximum TEFRA Plan Bencrits.
Effective January 1, 1983, the total annual benefit (as defined hereinafter) of any Member
under all defined benefit plans maintained by the Employer shall not exceed the limitntions
set forth in this Appendix and its subsections.
nnual Be efi , For purposes ofthis Appendix A,the tern"annual benefit"means a benefit
payable in the form of a straight life annuity with no ancillary benefits,under a plan to which
the Employees do not contribute and under which no rollover contributions have been made.
Amount of Total Annual benefit. The total annual benefit shall not exceed the lesser of(i)
ninety thousand dollars ($90,000) as such amount may hereafter be adjusted by a Code
Section 415 amendment or by the Secretary of the Treasury pursuant to Code Section
• 2006.14 Page 7
I
I
415(d)(1) for the plan year the Member's benefits become payable hereunder or (ii) one
• hundred percent(100%)of the Member's average compensation for his highest three years
of plan membership(as defined in Section I(f) of this Appendix A).
Adhistmentaff3cnefits. When retirement benefits under this plan are payable in any form
other than the form described in Section 1(a),the determination as to whether the limitation
described in this Appendix A has been satisfied shall be made, in accordance with
regulations prescribed by the Secretary of the Treasury or his delegate, by adjusting such
benefit so that it is equivalent to the benefit described in Section 1(a) of this Appendix A.
The annual interest rate assumption for this purpose shall be five percent (5%), which is
greater than the plan rate of 3% as set forth in Section 2.21 hereof. For purposes of this
section (c), any ancillary benefit which is not directly related to retirement income benefits
shall not be taken into account; and that portion of any joint and survivor annuity which
constitutes a qualified joint and survivor annuity(as defined in Code Section 411)shall not
be taken into account.
Adiustmcnt of Benefits Taken Before Age G2. If the retirement income benefit under this
plan begins before the Member's age 62,the determination as to whether the dollar limitation
set forth in Section I(b)(i) of this Appendix A, has been satisfied shall be made, in
accordance with Code Section 415, as amended from time to time, and the regulations or
rulings prescribed by the Secretary of the Treasury or his delegate,by adjusting such benefit
so that Section I(b)(i) of this Appendix A has been satisfied shall be made, in accordance
• with Code Section 415, and the regulations or rulings prescribed by the Secretary of the
Treasury or his delegate, by adjusting such benefit so that it is equivalent to such a benefit
beginning at such age. The annual interest rate assumption for this purpose shall be five
percent(5%), which is greater than the plan rate of 3%, which is set forth in Section 2.21
hereof. The reduction in the dollar limitation set forth in Section I(b)(i)shall not be reduced
below:
• 2006.14 Pop 8
If the benefit begins on or after age 55, $75,000, or
• if the benefit begins before age 55,the amount which is the equivalent of the$75,000,based
on regulations prescribed by the Secretary of the Treasury or his delegate.
Adjustment of Benefits Taken After Age 65. Ifthe retirement income benefit under this plan
begins after the Member's Age 65, the determination as to whether the dollar limitation set
forth in Section I(b)(i) of this Appendix A has been satisfied shall be made in accordance
with Code Section 415, as amended from time to time, and the regulations or rulings
prescribed by the Secretary or his delegate,by adjusting such benefit so that it is equivalent
to a benefit beginning at age 65.
High 3 Years. For purposes of this Appendix A,a Member's highest three(3)years of plan
membership shall be the period of consecutive calendar years (not more than three (3))
during which the Member was both an active Member in the plan and had the greatest
aggregate compensation from his Employer. For this purpose, a Member's compensation
shall mean the compensation defined in Code Section 415(c)(3) and the regulations and
rulings thereunder.
Limitation of Benefits. Notwithstanding the preceding provisions of this Appendix A, the
benefits payable with respect to a Member under this plan shall be deemed not to exceed the
limitation of this Appendix A, if.
• the retirement benefits payable with respect to such Member under this plan and under all
other"qualified"defined benefit plans to which his Employer contribute do not exceed ten
thousand dollars($10,000) for the applicable plan year and for any prior plan year; and
his Employer has not at anytime maintained a"qualified"defined contribution plan in which
the Member participated.
Fractions. In the case of an Employee who has fewer than ten(10)years as a Member of this
plan,the dollar limitation referred to in Section I(b)of this Appendix A shall be multiplied
by a fraction, the numerator of which is the number of years while a contributing Member
and the denominator of which is ten (10). To the extent provided by the Secretary of the
Treasury, this paragraph shall be applied separately with respect to each change in the
benefit structure of the plan.
In the case of a Member who has less than ten (10) years of Service, the percentage
limitation referred to in Section I(b) of this Appendix A and the minimum benefit referred
to in section (f) shall be multiplied by a fraction, the numerator of which is the number of
years of Credited Service and the denominator of which is ten.
II. Maximum Combined c laps Benefit and Contributions.
Effective January 1, 1984 if a Member is a participant in a defined contribution plan
maintained by the Employer, the sum of his defined benefit plan fraction and defined
•
2006.14 Page
contribution plan fraction for any Plan Year shall not exceed 1.0, calculated as hereinafter
• provided.
For the purpose of this Appendix A, the term "defined benefit plan fraction" shall mean a
fraction the numerator of which is the Member's projected annual benefit under this plan
determined as of the close ofthc applicable Plan Year and the denominatorof which is either
(i)one hundred fortypercent(140%)ofthe Member's maximum permissible defned benefit
under Code Section 415(b),based on the percentage of pay limits or(ii)one hundred twenty-
five percent (125%) of the Member's maximum permissible defined benefit under Code
Section 415(b),based on the dollar limits, whichever is less.
For the purposes of Section 11 of this Appendix A, the term "defined contribution plan
fraction" shall mean a fraction the numerator of which is the sum of all the "annual
additions" (as defined in Code Section 415(c) to (lie Member's accounts in the defined
contribution plans and the denominator of which is the sum of either(i) one hundred forty
percent(140%) of the maximum permissible "annual additions" for each Plan Year of the
Member's employment of this Employer, based on the percentage of pay limits, or(ii)one
hundred twenty-five percent (125%) of the maximum permissible "annual additions" for
each Plan Year of the Member's employment for his Employer, based on the dollar limits,
whichever is less.
Ill. January 1 Adjustments.
• In the event that as of any January 1 corrective adjustments are required pursuant to this
Appendix A,the Member's annual benefit shall be reduced by an amount adequate to insure
compliance with this Appendix A.
Section 14: Appendix B is added, effective as of January 1, 1977, to read as follows:
Appendix B
1. Maximum ERISA RIM Benefits.
Effective January 1, 1976, the total annual benefit(as defined hereinafter)of any
Member under all defined benefit plans maintained by the Employer shall not exceed the
limitations set forth in this Appendix and its subsections,
(a) Annual Benefit, For purposes of this Appendix B, the term "annual
benefit"means a benefit payable in the form of a straight life annuity with no
ancillary benefits, under a plan to which the Employees do not contribute and
under which no rollover contributions have been made.
(b) Amount of Total ALinual Benefit. The total annual benefit shall not
exceed the lesser of(i)seventy-five thousand dollars ($75,000)as such amount
may hereafter be adjusted by a Code Section 415 amendment or by the Secretary
of the Treasury pursuant to Code Section 415(4)(1) fbr the plan year the
• 2006.13 1108c IQ
Member's benefits become payable hereunder or(ii) one hundred percent (100%)
• of the Member's average compensation for his highest three years of plan
membership (as defined in Section I(e) of this Appendix B).
(c) Adjustment of Benefits. When retirement benefits under this plan are
payable in any form other than the form described in Section 1(a), the
determination as to whether the limitation described in this Appendix B has been
satisfied shall be made, in accordance with regulations prescribed by the
Secretary of the Treasury or his delegate, by adjusting such benefit so that it is
equivalent to the benefit described in Section I(a) of this Appendix B. For
purposes of this section (c), any ancillary benefit which is not directly related to
retirement income benefits shall not be taken into account; and that portion of any
joint and survivor annuity which constitutes a qualified joint and survivor annuity
(as defined in Code Section 411) shall not be taken into account.
(d) Adiustment Qf Benefits Taken Before Age 55. If the retirement income
benefit under this plan begins before the Member's age 55, the determination as to
whether the dollar limitation set forth in Section I(b)(i)of this Appendix B, has
been satisfied shall be made, in accordance with Code Section 415, as amended
from time to time, and the regulations or rulings prescribed by the Secretary of
the Treasury or his delegate, by adjusting such benefit so that Section I(b)(i) of
this Appendix B has been satisfied shall be made, in accordance with Code
• Section 415,and the regulations or rulings prescribed by the Secretary of the
Treasury or his delegate, by adjusting such benefit so that it is equivalent to such
a benefit beginning at such age.
(c) High I Years. For purposes of this Appendix B, a Member's highest three
(3)years of plan membership shall be the period of consecutive calendar years
(not more than three(3))during which the Member was both an active Member in
the plan and had the greatest aggregate compensation from his Employer. For
this purpose, a Member's compensation shall mean the compensation defined in
Code Section 415(c)(3)and the regulations and rulings thereunder.
(f) Limitation of Renefits. Notwithstanding the preceding provisions of this
Appendix B, the benefits payable with respect to a Member under this plan shall
be deemed not to exceed the limitation of this Appendix B, if.
• 2006.14 Page I I
the retirement benefits payable with respect to such Member under this
• plan and under all other"qualified" defined benefit plans to which his
Employer contribute do not exceed ten thousand dollars($10,000) for the
applicable plan year and for any prior plan year; and
his Employer has not at any time maintained a "qualified" defined
contribution plan in which the Member pnrticipatcd.
(g) Fractions. In the case of an Employee who has fewer than ten (10) years
as a Member of this plan, the dollar limitation referred to in Section 1(b) of this
Appendix B shall be multiplied by a fraction, the numerator of which is the
number of years while a Member and the denominator of which is ten (10). To
the extent provided by the Secretary of the Treasury, this paragraph shall be
applied separately with respect to each change in the benefit structure of the plan.
In the case of a Member who has less than ten (10)years of Service, the percentage
limitation referred to in Section I(b) of this Appendix B and the minimum benefit
referred to in section (f) shall be multiplied by a fraction, the numerator of which is the
number of years of Credited Service and the denominator of which is ten.
It. Janua I Adiustmcnts.
In the event that as of any January 1 corrective adjustments are required pursuant to this
• Appendix B,the Member's annual benefit shall be reduced by an amount adequate to
insure compliance with this Appendix B.
Section 14: Appendix C is added, effective January 1, 2005,to read as follows:
Appendix C
1. Minimum Required Distributions.
(a) General Rules.
(i) Effective Date. The provisions of the Appendix C will apply for purposes
of determining required minimum distributions beginning on or after January 1,
2005.
(ii) Precedence. The requirements of this Appendix C will take precedence
over any inconsistent provisions of the Plan.
(iii) Requirements of Treasury Regulations Incoryiorated. All benefit
payments required under this Appendix C will be determined and made in
accordance with the Treasury regulations under Code section 401(a)(9).
(b) Time and Manne r of Distribution.
• 2006.14 Page 12
(i) Required Beginnin Date. The Member's Retirement Benefit will begin
• or otherwise be paid to the Member by no later than the Member's Required
Beginning Date, as defined in Section L(f)(iv) of this Appendix C.
(ii) Death of Membe r Before Benefit Payments ftin. If the Member dies
before benefit payments begin, the Death Benefit under Article VII will begin no
later than as follows:
(A) If the Member's surviving spouse is the Member's sole
Beneficiary, then, benefit payments to the surviving spouse must begin by
December 31 of the calendar year immediately following the calendar
year in which the Member died, or by December 31 of the calendar year in
which the Member would have reached Attained Age seventy and one-
half(70-1l2), if later.
(B) If the Member's surviving spouse is not the Member's sole
Beneficiary, then, benefit payments to the Beneficiary will begin by
December 31 of the calendar year immediately following the calendar
year in which the Member died.
(C) If there is no Beneficiary as of September 30 of the year following
the year of the Member's death, any benefits due the Member will be
distributed by December 31 of the calendar year containing the fifth
• anniversary of the Member's death.
(D) If the Member's surviving spouse is the Member's sole Beneficiary
and the surviving spouse dies after the Member but before benefit
payments to the surviving spouse begin, this Section 1.(b)of Appendix C,
other than Section L(b)(i) of the Appendix C, will apply for the sole
purpose of determining the calendar year of the Member's death, as if the
surviving spouse were the Member.
For purposes of this Section l.(b)of Appendix C and Section L(c)of Appendix C,benefit
payments are considered to begin on the Member's Required Beginning Date(or, if
Section L(b%v)of the Appendix C applies,the date benefit payments are required to
begin to the surviving spouse under Section L(b)(i) of Appendix C). If income payments
irrevocably commence to the Member before the Member's Required Beginning Date (or
to the Member's surviving spouse before the benefit payments are required to begin to the
surviving spouse under Section l.(b)(i) of Appendix C) , the date benefit payments are
considered to begin is the date benefit payments actually commence.
(iii) Form of Payment. Unless the Member's benefit is distributed in the form
of annuity or in a single sum on or before the Required Beginning Dale, as of file
First Benefit Payment Calendar Year Monthly Retirement Income payments will
be made in accordance with Sections l.(c), L(d) and L(e). If the Member's interest
is distributed in the form of an annuity, such distributions shall be made in
• 2006-14 is
13
accordance with the requirements of Section 401(a)(9)and the Treasury
• regulations thereunder.
(c) Determination of Amount to he Distributed Each Year.
(i) General Monthly Retirement Income Requirements. If the Member's
benefit is paid in the form of a Monthly Retirement Income, such payments must
satisfy the following requirements:
(A) the benefit payments must be paid in periodic payments made at
intervals not longer than one year;
(B) the benefit payment period will be over a life(or lives)or over a
period certain not longer than the period described in Section 1.(d)or I.(c)
of this Appendix C;
(C) once payments have begun over a period certain, the period certain
will not be changed even if the period certain is shorter than the maximum
permitted;
(D) payments will either be nonincrcasing or increase only as follows:
(1) by an annual percentage increase that does not exceed the annual
• percentage increase in a cost-of-living index that is based on prices of all
items and issued by the Bureau of Labor Statistics;
(2) to the extent of the reduction in the amount of the Member's
payments to provide for a survivor benefit upon death, but only if the
Beneficiary whose life was being used to determine the benefit payment
period described in Section 1.(d)of the Appendix C dies or is no longer
the Member's Beneficiary pursuant to a qualified domestic relations order
within the meaning of Internal Revenue Code section 414(p);
(3) to pay increased benefits that result from a plan amendment.
(4) to provide cash refunds of employee contributions pursuant to Plan
Section 10.1(d), or to a deceased member, if the deceased member is not
survived by an Eligible Spouse or Eligible Child who is entitled to a
survivor's income benefit under this Plan, including any such a deceased
member whose benefits were in pay status who did not receive a refund of
all of his Accumulated Contributions, determined as of the date the
Member's Monthly Retirement Income commenced.
(if) Amount ReguirLd to he Distributed by Reguired Be git,nning Date. The
amount that must be distributed on or before the Member's Required Beginning
Date(or, if the Member dies before Monthly Retirement Income payments begin,
• 2006.14 rage 14
' i
the date Monthly Retirement income payments are required to begin under
• Section L(b)(i) or(ii)) is the payment that is required for one payment interval.
The second payment need not be made until the end of the next payment interval
even if that payment interval ends in the next calendar year. Payment intervals
are the periods for which payments are received, e.g.,bi-monthly,monthly, semi-
monthly, or annually. All of the Member's benefit accruals as of the last day of
the First Benefit Payment Calendar Year will be included in the calculation of the
amount of the Monthly Retirement Income payments for payment intervals
ending on or after the Member's Required Beginning Date.
(iii) Additional Accruals After Ekg Benefit Pa3 ment Calendar Year. Any
additional benefits accruing to the Member in a calendar year after the First
Benefit Payment Calendar Year will be paid beginning with the first payment
interval ending in the calendar year immediately following the calendar year in
which such amount accrues.
. • 7006.14 I'ngc 13 .
• (d) Requirements For income Distributions That Commence Durine ember's
Lifetime.
(i) Igifl! Life income Where the Beneficiary Is 1)`o(thc ember's oust, if
the Member's benefit is being distributed in the form of a joint and survivor
income for the joint lives of the Member and a nonspouse Beneficiary, Monthly
Retirement Income payments to be made on or after the Member's Required
Beginning Date to the Beneficiary after the Member's death must not at any time
exceed the applicable percentage of the Monthly Retirement Income payment for
such period that would have been payable to the Member using the table set forth
in Q&A-2 of section 1.401(a)(9)-6 of the Treasury regulations. If the form of
benefit payment combines a joint and survivor income for the joint lives of the
Member and a nonspouse Beneficiary and a period certain income, the
requirement in the preceding sentence will apply to Monthly Retirement income
payments to be made to the Beneficiary after the expiration of the period certain.
(ii) period Certain income, Unless the Member's spouse is the sole
Beneficiary and the form of benefit payment is a period certain and no life
income, the period certain for an income benefit payment commencing during the
Member's lifetime may not exceed the applicable benefit payment period for the
Member under the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of
the Treasury regulations for the calendar year that contains the benefit
• commencement date. If the annuity starting date precedes the year in which the
Member reaches age seventy(70), the applicable benefit payment period for the
Member is the benefit payment period for age seventy(70) under the Uniform
Lifetime Table set forth in section 1.401(a)(9)-9 of the Treasury regulations plus
the excess of seventy(70)over the age of the Member as of the Member's
birthday in the year that contains the annuity starting date, if the Member's
spouse is the Member's sole Beneficiary and the form of benefit payment is a
period certain and no Income, the period certain may not exceed the longer of the
Member's applicable benefit payment period, as determined under this Section
l.(d)of this Appendix C,or the joint life and last survivor expectancy of the
Member and the Member's spouse as determined under the Joint and Last
Survivor Table set forth in section 1.401(a)(9)-9 of the Treasury regulations,
using the Member's and spouse's Attained Ages as of the Member's and spouse's
birthdays in the calendar year that contains the annuity starting date.
• 2006•14 Page 16
(c) Requirements Eor Minimum Benefi t Payments Where Membe r Dies Before Date
Benefit ents ftin.
(i) Membe r Survived by Beneficiary. If the Member dies before the date
distribution of his or her benefit begins and there is a Beneficiary, (tie Member's
benefit will be distributed, beginning no later than the time described in Section
I.(b)(i)or(ii), over the life of the Beneficiary or over a period certain not
exceeding:
(A) unless the annuity starting date is before the First Benefit Payment
Calendar Year, the life expectancy of the Beneficiary determined using the
Beneficiary's age as of the Beneficiary's birthday in the calendar year
immediately following the calendar year of the Member's death; or
(B) if the annuity starting date is before the First Benefit Payment Calendar
Year, the life expectancy of the Bencficiarydetermined using the Beneficiary's
age as of the Beneficiary's birthday in the calendar year that contains the benefit
commencement date.
(ii) Death of n Surviving Souse Before Distributions to Surviving Spouse
g i . If the Member dies before the date distribution of his or her benefit
begins, the Member's surviving spouse is the Member's sole Beneficiary, and the
surviving spouse dies before benefit payments to the surviving spouse begin, this
• Section L(c)will apply for the sole purpose of determining the calendar year of
the Member's death, as if the surviving spouse were the Member, except that the
time by which benefit payments must begin will be determined without regard to
Section i.(b)(i)of this Appendix C.
• 2006.14 Page 17
• (f) Definitions.
(i) Beneficiary. The person who is a Beneficiary under Article VII of the
Plan and is the Beneficiary under Code section 401(a)(9)and section 1.401(a)(9)-
1, Q&A-4, of the Treasury regulations.
(ii) F'rs Benefit Pa e t Calendar Year. A calendar year for which a
minimum benefit payment is required. For benefit payments beginning before the
Member's death, the First Benefit Payment Calendar Year is the calendar year
immediately preceding the calendar year which contains the Member's Required
Beginning Date. For benefit payments after the Member's death, the First Benefit
Payment Calendar Year is the calendar year in which benefit payments are
required to begin pursuant to Section L(b)of this Appendix.
(iii) Life Expectanev. Life expectancy as computed by use of the Single Life
Table in section 1.401(a)(9)-9 of the Treasury regulations.
(iv) Reguired Beginnin Date. April 1 of the calendar year immediately
following the calendar year in which a Member reaches attained age seventy and
one-half(70-1/2)or retires,whichever is later.
(v) Monthl Retirement Income. Distributions in the form of a monthly
retirement income or a monthly annuity benefit p ent.
Passed 0 u G Approved: 14� . Z°°G
Presidi Officer /'Mayor
A'fl'E T: � APPR FORM:
v
City Clerk City Counselor
• 2006.14 Page 19